EU Energy Policy Strategy: Towards a Low-Carbon Economy

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A presentation by Daniel Fraile of CAN Europe at the CAN Europe - CANSA Summit held in India in March 2014.

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EU Energy Policy Strategy: Towards a Low-Carbon Economy

  1. 1. EU Energy policy Strategy: Towards a low-carbon economy Daniel Fraile March 2014
  2. 2. Outline • EC low carbon economy and Energy roadmap 2050 • The 2020 package- current policy • The post-2020 process • What’s next
  3. 3. EC 2050 roadmap
  4. 4. EC Roadmap for moving to a low carbon economy in 2050
  5. 5. EC 2050 Energy roadmap: 5 Decarbonisation Scenarios Source: EC Energy Roadmap 2050
  6. 6. ON THE WAY TO 2050 First stop: 2020
  7. 7. 2009 EU Climate and Energy Package • Two binding target – 20% GHG Reduction target (compared to 1990 levels) – 20% Renewable energy share of final energy demand • 10% RES in transport by 2020 • One indicative target – 20% energy efficiency (with respect to 1990 levels of primary energy demand) • Emission Trading Scheme for carbon allowance
  8. 8. 2009 EU Climate and Energy Package REGULATIONS • Regulation (EC) No 443/2009 setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO2 emissions from light-duty vehicles DIRECTIVES • Directive 2009/28/EC on the promotion of the use of energy from renewable sources • Directive 2009/29/EC to improve and extend the greenhouse gas emission allowance trading scheme of the Community • Directive 2009/30/EC as regards the specification of petrol, diesel and gas-oil and introducing a mechanism to monitor and reduce greenhouse gas emissions AND as regards the specification of fuel used by inland waterway vessels • Directive 2009/31/EC on the geological storage of carbon dioxide DECISIONS ADOPTED JOINTLY BY THE EUROPEAN PARLIAMENT AND THE COUNCIL • Decision No 406/2009/EC on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020
  9. 9. 2020 Targets on GHG emissions 2020 GHG Emissions Target (compared to 2005 levels) (%)
  10. 10. 2020 Targets for Renewable Energy Share of renewables in gross final Energy consumption
  11. 11. Primary energy demand by fuel Source: EC Energy trend to 2050, Reference scenario (2013)
  12. 12. RES penetration in different sectors Source: EC Energy trend to 2050, Reference scenario (2013)
  13. 13. Post-2020 Energy & Climate policy framework
  14. 14. The post-2020 Climate and Energy Framework 2030 C&E Framework Energy roadmap 2050: No-regrets options RE strategy: post-2020 RES framework ETS failures: - back-loading proposals - long-term structural measures UNFCCC: New climate agreement by 2015
  15. 15. Pathway to 2015
  16. 16. The European Commission Proposal on a 2030 E&C framework- NGO views – Low ambition: 40% for GHG and 27% for RES – No concrete figure for Energy efficiency – No national binding targets for RES nor Energy efficiency – Lack of focus on sustainability – Too much focus on electricity prices/ competitiveness – Focus on power (and ETS) sector. Abandon efforts on transport. Little attention to heating & cooling – Positive appraisal of ETS as the main tool
  17. 17. Why – 55% domestic by 2030 • Logical pathway from -15% to -95% • Realistic pathway based on current -2%/yr • Feasible based on multitude of studies
  18. 18. Realistic vs EC 2050 Roadmap pathway 2006 2011 2015 2020 2025 2030 2035 2040 2045 2050 0 10 20 30 40 50 60 70 80 90 100 Realistic Current Roadmap -5% -80% -95% -55% -40% -20% -35%
  19. 19. What do we need to reach -95%? We need 3 binding targets • Need to make the right choices (risk of high-carbon lock-in). Pushing for full potential – GHG emissions reductions (at least -55% by 2030) – Demand reduction (at least -40% by 2030) – Renewable energy (at least 45% by 2030) • Need targets to steer massive investments in production capacity and grids • Not by carbon price alone, need complementary policies
  20. 20. carbon price policy is not enough IEA: Summing up the parts, 2011
  21. 21. Power sector related policies supporting a 3 targets approachEnergy market design  Continuation of support policies for RES, to reduce technology cost and to overcome non-market barriers  Implementation of a functioning single European energy market that promotes an energy transformation  Creating a level playing field for all energy technologies Coal related policies  Full implementation of IED, and committed to continuously strengthening best available techniques  Phase coal out of system (i.e. EPS) Carbon Market  ETS- Permanent cancellation (~2,2bn)  ETS- Cap reduced at approx. 2,6% annually
  22. 22. What’s next • Ban-ki-Moon Summit, September • EU deadline for a 2030 target: October • UNCFF deadline: 1Q 2015 • Energy efficiency directive review, June • Review of subsidies schemes across Europe
  23. 23. Thank you for your attention.
  24. 24. RES are fundamental for Europe’s decarbonisation EC decarbonisation scenarios: -RES in final energy: ~ 30% in 2030 -RES in electricity: 52% to 58% in 2030
  25. 25. Many scenarios on the power sector evolution reference scenario of the Greenpeace/EREC study. Figure 4 Development of the share of renewable energy sources in electricity generation (including net imports) in the different scenarios Source: Compiled from data provided by the given studies and by Eurostat (2010) The following figure takes a closer look at renewable electricity generation in Europe in the Source: SEFEP METASTUDY 2012- Compiled from data provided by the given studies and by Eurostat (2010) Development of RES in electricity generation (including net imports) EC decarbonisation scenarios range (RES between 52 to 58%)
  26. 26. European Commission White Paper 1+1/2 targets package:  40% GHG, domestic (compared to 1990)  EU-wide binding target for RES: at least 27%  No carbon target for fuels (FQD) and no sub-target for RES transport  Indicative level for Energy efficiency: 25%  New governance process with national decarbonization roadmaps  Legislative proposal- ETS Reserve mechanism  shale gas enabling framework guidelines- No regulation  Analysis on energy prices and costs
  27. 27. Key aspects of the White Paper  GHG Target:  ETS: 43% (compared to 2005)  ETS’s Linear Reduction Factor: 2,2% after 2020  Non- ETS: 30% (compared to 2005)  No clear effort sharing methodology  LULUCF to be included  No conditionality  New ETS reserve mechanisms  Review of carbon leakage list- BAU *[…to maximise the resource efficient use of biomass in order to deliver robust and verifiable greenhouse gas savings and to allow for fair competition between the various uses of biomass resources in the construction sector, paper and pulp industries and biochemical and energy production. This should also encompass the sustainable use of land, the sustainable management of forests in line with the EU's forest strategy and address indirect land use effects as with biofuels.] RES Target: EU-wide binding: at least 27% No RES transport target Improved biomass policy* Substantial revision of RED for after 2020 New governance before 2020 Phase out support after 2020
  28. 28. GHG emission reduction targets 40%
  29. 29. Key stakeholders in Brussels 2-3 targets & more ambition 1 GHG Target& low ambition Business Europe No targets: Only an instrument Coal lobby (Euracoal) Oil and Gas (OGP, Europia), Energy-intensive industry (chemical, paper, cement, lime, metals, glass, consumers, clay, etc.
  30. 30. EC Green paper • 27th March • COM Green Paper on 2030, and public consultation Public consultation • 500 response • Until July 2 Informal Minister council – Dublin • 23rd April • MS informal views on targets European Council on energy • 2nd May, • EU Heads of States give mandate to COM for analysis and sets the timeline Impact assessment for targets/ Energy prices study • Summer/ autumn • EC internal work December 2013 • COM to present communication on 2030 policy options Timeline- EU process: Next steps EU Council on Competitiveness • February 2014 • EU Council on Competitiveness EU Council on 2030 • March 2014 Ministerial meeting for int’ negotiations • May/June • MS to take EU position on domestic target for int climate negotiations UN “Ban-ki-Moon” meeting • September COP20-Peru 2014 2013
  31. 31. what it’s like being an environmental NGO (in Brussels) trying to lobby for change, the imbalances in lobbying capacity between such NGOs and large corporations? NGOs Many Industry groups, many voices Large industry groups: Eurelectric, Business Europe, etc. Member States: UK, DE, FR Opportunities & Challenges

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